A high end agency brand says pricing in the rental market continues to rise because of demand exceeding supply - and she notes that renting patterns have changed because of the pandemic.
Nicky Stevenson, managing director of Fine & Country UK, says rental prices across the prime markets of England and Wales have risen by 12 per cent year-on-year, which is on par with price growth in the wider rental market.
“The price threshold for a premium rental property is now £2,500 per calendar month and the average monthly rent for a prime market property is £3,304, up over £300 per month compared to a year ago” she says.
“Renters face stiff competition for properties, with [property consultancy] TwentyCi reporting the availability of new properties to let is considerably lower than a year ago, while renter demand remains high. The demand/supply imbalance is particularly evident across the capital as many continue to return to the city” Stevenson comments.
She notes that traditionally, renters have lived near to where they work.
“Prior to the pandemic in 2019, 15 per cent of renters lived within a mile of their place of work and over half within 5 miles. Fast forward to 2022, and with hybrid working one of the major societal shifts induced by the pandemic, those proportions have fallen to just 11 per cent and 43 per cent respectively” says Stevenson.
“Furthermore, the proportion of renters living a significant distance, which is considered to be over 25 miles away from their place of work, has increased considerably from less than 15 per cent in 2019 to over one in five today. It remains to be seen whether this trend continues” she concludes.
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